MARKET REPORT: FTSE continues to fall as hopes for rate cuts fade
The FTSE 100 suffered its longest losing streak since February as hopes of early rate cuts fade.
It fell 0.3 percent, or 21.64 points, to 8317.59 – a fourth straight day of losses and fell into the red for the second week in a row, not long after passing 8400 for the first time. The FTSE 250 rose 0.7 percent, or 139.63 points, to 20,770.93.6.
Wednesday’s inflation figures disappointed the city. While the sharp drop to 2.3 percent was welcomed by politicians as a sign that inflation had returned to normal, it was higher than forecasts of 2.1 percent, dimming the prospect of early interest rate cuts.
Russ Mould, investment director at AJ Bell, said: ‘The sooner interest rates are cut the better.
‘That should not only make consumers feel a little more confident, but it should also put companies in a stronger position to increase investment. It could improve investor sentiment and encourage greater risk-taking.”
Downward trend: The FTSE 100 fell 0.3 percent, or 21.64 points, to 8317.59 – a fourth straight day of losses
Meanwhile, AJ Bell slumped after founder Andy Bell sold for almost £30 million – 7.5 million at 375p each – but still has an 18.7 per cent stake.
A day earlier, the stock had been boosted after half-year results showed a 47 percent rise in profits to £61 million and a rise in customer numbers.
The valuation also rose following a rejected £4.7 billion bid for rival Hargreaves Lansdown
After the sale of Bell, it had to give up some profits and fell 4.6 percent, or 18.5 cents, to 384.5 cents. Quality assurance company Intertek reported a strong start to 2024, with sales rising 7.5 percent to £1.1 billion in the first four months. That included a 6.2 percent increase in sales of its consumer products and increased revenue by 1.4 percent, or 71 cents, to 5,025 cents.
GSK was approved by a Chicago jury for the first case to go to trial over the now-discontinued heartburn drug Zantac, but fell 0.2 percent, or 3.5 cents, to 1,774.5 cents.
Rolls-Royce has chosen London-listed Balfour Beatty as construction partner for the expansion of its Derby submarine site, lifting Balfour 1.4 percent, or 5.2 cents, to 373 cents.
Ukrainian miner Ferrexpo has expanded its partnership with one of Europe’s largest steel producers and is supplying iron ore pellets to Salzgitter, Germany.
The pair have been working together since 2016. Ferrexpo climbed 5.8 percent, or 2.6 cents, to 47.5 cents. Education software provider Tribal has settled a dispute with a Singapore university over a contract that was terminated over a year ago.
The London-listed company said it did not admit any liability but paid £3.1 million – far less than the £10.6 million the institution wanted. Tribal gained 3.5 percent, or 2 cents, to 59 cents.
A Genedrive test that aims to identify babies who are at higher risk of hearing loss if given certain antibiotics has secured orders worth more than £100,000 from five hospitals in Manchester. Shares rose 10.5 percent, or 0.18p, to 1.85p.
Pensionbee – down 1.7 percent, or 2.5 cents, to 146.5 cents – is awaiting regulatory approval for a deal to partner with a major US institution. The company, which helps people consolidate pensions into one pot, added that its US operations could be the same size as its UK operations within a decade.